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Sunday, February 19, 2017

FAQ: Everything You to Need to Know About Temporary Plates and No OR/CR, No Travel

UPDATE 2: Standardized temporary plates has been postponed. Read it here (3/8).UPDATE 1: The LTO has suspended the No OR/CR, No Travel for now. Read it here (2/23).

Standardized temporary plates? No OR/CR, No Travel policy? Confused with all this? Get all the answers to your questions here. For ease of reading, we have indicated key words in bold.What is this new issue with the Land Transportation Office (LTO)?

Well, aside from the backlog when it comes to the issuance of new number plates and driver licenses, there are two new issues here:

The first one deals with a memorandum issued by the Assistant Secretary of the LTO last January 11, 2017 and is already in effect. It has to do with the standardization of temporary plates by using the MV file number for motorcycles and a combination of conduction sticker and MV file number for anything with more than two wheels.

It’s the memorandum requiring all vehicles released on or after February 15, 2017 onwards to have a certain temporary plate format for “unity and ease of visual recognition.” And the memorandum put on vehicle dealers the obligation of attaching on the vehicle the unified temporary plate format with complete information before delivery or release to the buyer.

Now, the MV file number appears only on the Certificate of Registration (CR) which one gets only upon completion of the registration process. And thus the second issue is what impacts on the sale of vehicles.

The second issue is the more pressing one, but is often lumped together with the first issue and because the public has gotten used to lax implementation of the law.

This second issue is the strict implementation of the No OR/CR, No Travel rule.

In the first paragraph of the memo in which it cites Republic Act 4136 or the Traffic Code of the Philippines, the LTO will apprehend and fine drivers using an unregistered vehicle, be it a two-, three-, four-, or even six- or eight-wheeled vehicle.

The exact words the memo uses are: “to ensure that only registered motor vehicles are used or operated on any public highway”. This is the most critical part of the memo and it is much too overlooked.

RA 4136 specifies that only registered motor vehicles can be operated on Philippine roads. People think the conduction sticker allows use of a car. That’s inaccurate because even on the LTO’s website it says:

(1.a.a.1) Issuance of Conduction Sticker – Conduction Stickers are only issued to accredited assemblers and importers of whole MV for road testing and delivery. The conduction sticker is used to allow legal utilization of motor vehicles prior to its initial registration.

The legal use referred to in the above is road testing and delivery.

Adding to the wrong impression about Conduction Stickers allowing use of a vehicle, is the idea that it is allowed for 7 days. This too is wrong.

The 7-day window for a dealer to register a sold vehicle with the LTO is merely the penalty-free window within which the registration must be processed. (RA 4136. Chapter V. Sec. 56. A.) This doesn’t mean that a vehicle can be operated without registration. In fact, RA 4136 also penalizes driving a motor vehicle without registration. (Chapter V. Sec. 56. D.)

So why exactly is needing an MV file number and not being able to use an unregistered vehicle going to impact the buying experience?

Well, if registration happened within the day of purchase, there would be no issue. The impact comes from the fact that it takes anywhere from 14 to 90 days to complete registration.

These completion times are based on transmittal receipts held by vehicle dealers.

Is it possible to complete the registration process within the 7-day period prescribed?

Oh yes, it is possible to complete registration within even 1, 2, or 3 days, but these usually happen when there is public scrutiny or special considerations like “SOP” or high connections.

Are these memorandums affecting Metro Manila only or is it nationwide?

If it’s taking the government so long in issuing plates, why don’t we just use the Conduction Sticker numbers permanently?

As mentioned above, Conduction Stickers serve a very specific purpose. It’s issued to accredited assemblers and importers of whole motor vehicles (MV) for road testing and delivery only. The conduction sticker is used to allow the legal use of a vehicle prior to its initial registration. The LTO is only “enforcing the law” that requires motor vehicles to be registered before its release.

What about these Virtual Plates?Because of the backlog in getting the permanent plate numbers, the LTO is issuing so-called “Virtual Plates”. Virtual Plates contain the car registration numbers issued for a new vehicle; it’s just that the assigned plate number isn’t available yet. Having a virtual plate helps in the release of your permanent plate number in the future.

Now, this is where it gets tricky.

The law actually prohibits the making and/or using of improvised plates. It has corresponding fines unless you have an Authority to Operate with the Use of Improvised Plates. With that in mind, if you plan to use your Virtual Plate number, always have a copy of your OR/CR with you and a copy of the Authority to Operate with the Use of Improvised Plates.

If I bought a vehicle before February 15, 2017, how does it affect me?

If you have your OR/CR with you, then these two memorandums don’t affect you much. You can be pulled over by authorized LTO personnel, yes, but there are no fines involved. All you need to prove is that: first, you bought the vehicle before February 15, hence not needing the standardized temporary plate; and second, that you have the OR/CR with you to prove ownership. In other words, if you don’t want the hassle, just ditch those “Euro” or “JDM” look temporary plates and go for the standardized format.

If you don’t have an OR/CR yet, you cannot use your vehicle. The 7-day window using the Vehicle Sales Invoice or Delivery Receipt, does not work anymore. There was never a 7-day legal usage window in the first place. It came about from misinterpretation and “nakagawian”. You can be fined P 10,000 for using an unregistered vehicle. If registered to another owner, the owner is fined P 10,000 and the driver, P 1,000.

If I bought a vehicle on or after February 15, 2017, how does it affect me?

Your vehicle should have been released by the dealer with the standardized temporary plate already attached. It should indicate details such as the Conduction Sticker number, dealer name, and MV File Number. And since the MV File Number is only generated once your vehicle has been registered, you should also have your OR/CR too.

If you still don’t have your OR/CR, you cannot use your vehicle. Even if you use the standardized temporary plate, but don’t have the MV File Number, you are considered an unregistered vehicle. You can be pulled over and fined. The fine is also P 10,000 to the owner and P 1,000 to the driver.

How many times can I be pulled over in a day? And how many times can they fine me?

It’s not known at this time.

Who can apprehend me?

Currently, only LTO personnel/enforcers and the PNP (Philippine National Police) including the HPG (Highway Patrol Group) can pull over and/or apprehend erring motorists. It remains to be seen if agencies such as the MMDA (Metro Manila Development Authority) and local police will implement this No OR/CR, No Travel Policy.

If I get pulled over, what are my rights?

Understanding that there are delays in the issuance of the OR/CR, the LTO said that they’ll be lenient initially and let motorists and dealers out with just a warning. While they are working to speed up the vehicle registration process, they are discouraging motorists and dealers from giving “SOP” because this will simply lead to increased corruption within the LTO; the very same thing the Durterte Administration is trying to snuff out.

Do dealers have fines too?

Yes, they share in the burden too. The use of non-standardized temporary plates will net the dealer P 100,000 for the first violation; P 500,000 for the second violation; and revocation of their LTO accreditation for the third. The same fines apply if a vehicle is released with no MV file number because it makes the standardized temporary plate invalid. This is the reason why several dealers haven’t had any new vehicle release for almost a week now.If I just bought a new vehicle, how long do I have to wait until my vehicle gets released?

It depends actually. Ideally, it takes only 7 days for the OR/CR to become available. Once you have it, then you can freely use your new vehicle. In reality though, there have been some reports of backlog at the LTO stretching up to 90 days. If that’s the case, you can’t use your new vehicle or even bring it out of the showroom unless you either: drive it yourself and risk being fined; or two, bring it home on a car carrier and park it in your garage. In both cases, your new vehicle will be decoration in your garage until you get your hands on the OR/CR.

Who’s at fault with all these delays?

It seems the dealers and the LTO are pointing fingers at each other.

As a bit of a background, three types of paperwork is required to successfully register a new vehicle. You’ll need the Sales Invoice (dealer generated), PNP Clearance or MVCC (Motor Vehicle Clearance Certificate) (PNP generated, applied for by dealer or manufacturer), and Certificate of Stock Reported or CSR (manufacturer or importer generated).

It seems the delays (from the dealer side) are coming from the issuance of the PNP Clearance and the CSR. The CSR is especially tricky since this comes from the manufacturers/distributors themselves, so the dealer has largely no control.

More often than not though, the delays have something to do with the LTO system itself. Though they have come up with solutions to reduce the registration backlog, such as implementing a DIY Registration System for dealers, the fact is, the 7-day window is rarely met. Also, the DIY registration system is still a concept under discussion among stakeholders. The actual implementation doesn’t even have a proposed launch date yet.

So why the long processing time?

Apart from the finger pointing, another reason for such a long processing time is that the registration process has not significantly evolved since the signing of RA 4136 in 1964!

The CSR process requires multiple clearance application and reporting by the importer/manufacturer, then multiple clearance, evaluation, and registration by dealers, while also submitting multiple copies of redundant documentation despite computerization. And the same process exists despite the fact that the number of vehicles sold has grown exponentially since 1964.

What ties everyone’s hands is that the old law RA 4136 and Republic Act 6539 (An Act Preventing and Penalizing Carnapping) have strictly defined how the registration process must be done. Without a revision of these laws, the multiple redundant steps may still have to exist.

Even if dealers have submitted all the necessary documents for registration, the paperwork is lost in the multiple manual steps and reviews resulting in delays in the release of the OR/CR.

If I think I’ve encountered an erring LTO personnel, who can I contact?

You can contact the Land Transportation Office or LTO through their website or land line: 02-922-9061 to 66.

WHY IS LTO NOT WORKING WELL OR NOT DOING ITS PART FOR THE BENEFITS OF THE PUBLIC BUYERS? FOR EXAMPLE, MY CRV NEW PLATE NUMBER WOULD TAKE ALMOST THREE YEARS NOW, THE NEW PLATE IS STILL NOT AVAILABLE? AND WHY PROHIBIT THE USE OF UNREGISTERED CAR WHEN ITS THE AGENCY'S FAILURE AND FAULT TO FASTLY SERVE THE PEOPLE? YOU WANT ONLY TAX PAID TO THE GOVERNMENT AND YET FORGOT TO SERVE THE PEOPLE VERY WELL. MAGTRABAHO KAYO NG MAAYUS AT EFFICIENT AND DON'T BURDEN THE PEOPLE OF NOT USING THEIR RIGHTS TO USE THEIR VEHICLE ON THE ROAD WHEN IT IS YOUR BIG FAILURE TO PROCESS. WITH THIS BACK LOG IT MEANS YOU ARE NOT FUNCTIONING WELL AND NOT SERVING THE PEOPLE.

Nothing is change actually under the new administration with the strict implementation of an old LTO regulation, the buying public is always at a loss with all the finger pointing of the inefficiencies.

Duterte should treat the LTO like a CEO would do for a company. If after 8 months, the department is unable to deliver any of its functions, in this case, license plates, license cards and now something as simple as OR and CR, then the CEO should either fire the department head or abolish the department altogether. If a department is not functioning, just eliminate it. The guy Duterte assigned to the position, Galvante, is not even qualified for the job. Heck, he only got it because he is a close friend of the president.

Registration would have been easy if the LTO,TRAFCOM are interlinked. Meaning as soon as the dealer invoice the sale, since there will be no more hassle like having your documents checked by HPG, then send that for uplaoding at the DOTC then pay for the release of your OR and CR. Exhausting process for dealers. Then they get the blame for not being able to give the OR and CR to the clients. Registration would be easy for dealers to comply with the " NO REGISTRATION NO RELEASE" if all they need to do is after they invoice the unit bring the INVOICE and DR to LTO then have it registered. Kaso this is not the case..Both Clients and Dealers are suffering. Now they want dealers to provide unified temp plates, how about the ones paid for the plate nos. When dealers regsiter they pay for the palte nos. in this case the LTO should be the ones who would release to dealers clients the TEMPORARY PLATES because it is their fault for not being able to give out the plate number...kaso upto now they still have the TRO on the issuance of plate numbers. hay...sana someone has to tell Pres DU30. I believe in his political will but the people whom he trust to implement policies are not doing their job.

Banana Republic... A single piece of plate would just take less than a minute to manufacture. Why make a contract abroad for a supplier of the plates? They do these kind of things for kickbacks, just like the never ending road constructions. I'm very disappointed with Duterte, I'm losing hope with this country's government.

I agree...why do they have to pass the burden to consumers? Once your car is released, hindi na dapat nmin pananagutan ang kakulangan nyo sa pagprocesso ng or/cr..they have to be considerate and allow the threshold of 90days from the date of purchase for the newly released cars to operate kahit walang orcr..dealers even use this tactic too of not relaeasing my or/cr...like i have to give them the 4pcs checks the need fr my car insurance and i failed to do so...my or/cr wont be released?is this even fair?blackmail ata ang tawag jan...then this news/memo came up. i texted so many times na my SA asking if available n ung or/cr ko coz my checks are now ready...pero d nya ko nirereplyan....pede bang hindi ko din muna ibbgay ung cheke ko without them giving my orcr?..haist...only in pinas..Govt is govt..walang pagbabago..walang improvement...their failure is people's burden...sana makapagwelga din tau para maipaglaban to void that memo. so stupid..parang tanga lang.ang kotse mo nakadisplay sa garage..habang ikaw haggard sa commute..too bad!!hope Philippine Govt can do something better about this.

I agree...why do they have to pass the burden to consumers? Once your car is released, hindi na dapat nmin pananagutan ang kakulangan nyo sa pagprocesso ng or/cr..they have to be considerate and allow the threshold of 90days from the date of purchase for the newly released cars to operate kahit walang orcr..dealers even use this tactic too of not relaeasing my or/cr...like i have to give them the 4pcs checks the need fr my car insurance and i failed to do so...my or/cr wont be released?is this even fair?blackmail ata ang tawag jan...then this news/memo came up. i texted so many times na my SA asking if available n ung or/cr ko coz my checks are now ready...pero d nya ko nirereplyan....pede bang hindi ko din muna ibbgay ung cheke ko without them giving my orcr?..haist...only in pinas..Govt is govt..walang pagbabago..walang improvement...their failure is people's burden...sana makapagwelga din tau para maipaglaban to void that memo. so stupid..parang tanga lang.ang kotse mo nakadisplay sa garage..habang ikaw haggard sa commute..too bad!!hope Philippine Govt can do something better about this.

IF you want your law to be followed, then fine correct party. Fine the DEALERS who in the first place should only sell cars that are registered. If ndi mabenta ung car then LTO should have a process to retract the registration. Kaming mga consumers at nagpapasahod sa LTO pa mahihirapan. Not very well thought of. lalaki ng sahod ng head ng LTO nag bbuffet lang nnaman araw gamit pera ng taong bayan.

LTO!! KAYO KAYA BIGYAN NAMIN NG PENALTY SA KALOKOHAN NYO!!! NAUNA NA MGA BAYAD NAMIN PERO ANO! HANGANG NGAYON NAGAANTAY KAMI! TAPOS NGAYON! ANG KAKAPAL NG MUKA NYO PARA MAMERA SA KASALANAN NYO!! FUCK THE SYSTEM!TO YOU! TO THE PERSON WHO IS RESPONSIBLE IMPLEMENTING THIS INTERGALACTIC LAW! TRY TO THINK 100 TIMES!! MAYBE YOU DECIDED TO IMPLEMENT THAT FREAKING LAW BECAUSE IF YOUR STATUS! YOUR POSITION! YOU DIDN'T THINK WHATS THE IMPACT OF THIS TO ALL PEOPLE! IS THIS A SOLUTION OR ANOTHER WAY FOR YOU TO MAKE SOME MONEY TO COMPENSATE PEOPLES MONEY THAT YOU'VE TAKEN! WE DONT KNOW WHY AND WHAT THE HECK, WHAT PUSHES YOU TO IMPLEMENT FUCKING RULES!!! YOU SELFISH!! MAY BALIK YAN!!!!!!

Sir Uly, question, is there a new memo from LTO to DEALERS saying NO REGISTRATION NO RELEASE? Kasi dealers now are holding their releases. What happened to the 7-day window??? As far as i know, the 7-day window for the orcr has been there na, i think a year or two ago na.. Kawawa naman ang taong bayan, walang kalaban laban sa panukalang ito ��

Apparently it's to ensure no one will violate the Citizen's Chapter of LTO. Or if you want more and would recklessly use your vehicle with addition you don't have a driver's license, then the fine would be Php 13,000.00. So, good luck in following the new Law.

BULLSH!T memo that doesn't make any sense...it's their fault but ours to pay! what a crap! first of all you at LTO should look at the old vehicles that causes more damage on the road! smoke belchers and public vehicles that pumps their damn brakes before it works! busses who swerves like a freaking small cars on the track and piles of public vehicles that covers the whole freakin road just to load and unload! common LTO there's so much to look at besides giving a memo that benefits your pockets!!!

LTO is THE problem. They still take a ludicrously long time to issue the plates despite the complete documentation. "uphold the law" my posterior. These clowns just want you to pay bribe money to speed up the processing. THese jackasses have the galls to impose a standard when they can't even uphold their own. Who fines the LTO for their blunders?

Ang batas ay dapat pra sa kapakanan ng nakararami, in this case iabolish o dpat irevise ang batas kse maraming naapektohan. Sa ganyang sistema pwede namin kayong kasuhan ng economic sabotage. Sa dami naming naapektuhan. May PNP Clearance, CSR, at Sales Invoice, why not allowing all the dealers to use the PNP Clearance number as a temporary travel documents togethet with the Sales Invoice, in a way that LTO will have an ample time to perform their duty for the processing of the customers registration. This will also give protection to both parties.

Bullshit LTO! You know whats the real problem! is all on your sytem, your manpower, your procedure and your IT provider! 7 DAYS TO REGISTER? BULLSHIT! YOU HAVE A LOT OF REQUIREMENTS BEFORE REGISTRATION.. PRIOR TO APPLY FOR PLATE REGISTRATION AND TO GET OR/CR YOU NEED CERTIFICATION OF STOCK REPORTED (csr) WHICH IS PROCESSED BY MANUFACTURER IN YOUR MAIN OFFICE, THERE IS NO PROBLEM ON THE SIDE OF MANUFACTURER THEY CAN DO THE PROCESS BUT YOU HAVE LIMITATION PER DAY PROCESSING... WHY???????? AND HOR THEY CAN BE DONE IF YOU WILL LIMIT THEM???? YOU HAVE ALSO LACK OF COMPUTER STATION IN THE (DIY) 12 COMPUTER STATION FOR ALL CAR/MC MANUFACTURER???BULLSHIT!!!! AND THE SYTEM THAT THEY USED WHICH IS PROVIDED BY STRADCOM IS ALWAYS ENCOUNTER HANGUP IN THEIR EVERYDAY PROCESSING.. BULLSHIT AGAIN!!!! LAST YOU YOUR NOT ABLE TO PROVIDE CSR FORM TO THEM WHICH IS CAUSE OF THER BACKLOGS, FROM DECEMBER16 TO JANUARY17 TOTALY YOU HAVE NO FORMS AND THE BACKLOG OF CSR GOES UP TO MORETHAN 3HUNDRED THOUSAND THEM YOU WILL RELEASED A MEMO NO OR/CR NO TRAVEL! PARA KAYONG NAGPAKAIN SA MGA BUWAYA NYONG ENFORCER! WHY YOU NOT TELLING THE TRUTH TO THE PUBLIC?????? MGA BULSHIT KAYONG MATATANDANG HUKLUBAN KAYO! TUMANDA NA KAYO SA PANGUNGURAKOT!

i was given an assigned plate number (no actual plate release) can i make and used an improvised plate using my assigned number as my virtual plate? i am tired of using my conduction number!thanks and more power!

My dealer has given me a photocopy of OR, CR is not yet available because it is on process with the original OR as requirement. They said thay I can already used my vehicle...can I really used my vehicle having only a photocopy of OR?

Hi wanted to ask if its true that you can request for another plate ending number if the plate that LTO issues is the same number or same coding day as your old car. My sales agent is saying that they can no longer request specific ending numbers from LTO. Please help to clarify if this is true or has anyone had any experience with the same. thanks!

I know that we can file a complaint with the DTI against dealers if the dealers are the erring party.But does anyone know if there's a way for us MV owners to get together and file a case against the LTO for their sheer incompetence and negligence? I mean, most of these memos are just plain ridiculous, and MV Owners should not get penalized by these stupid memos that obviously have not been thought out!! And I can tell from people's comments here how utterly disgusted and dissatisfied they are with the LTO's services, but are we really just going to complain to each other about it and not take any legal step to finally get things straightened out?? I think we should also defend our rights and contest the LTO's memos that conflict with our rights.If anyone has ideas about banding up, I would appreciate it if you could write to Car Guide, TopGear, or whatever blog you could write to, and I will gladly join. Thank you in anticipation.